Gibbons Law Alert

Gibbons Law Alert

Author: Mark B. Conlan

Rite Aid Bankruptcy Judge Issues Opinion on Important Post-Petition Landlord Lease Issues

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Posted in Bankruptcy

On November 11, 2025

Overview In a significant ruling for commercial landlords, dated November 3, 2025, the United States Bankruptcy Court for the District of New Jersey denied three motions filed by HVP2 LLC, the landlord of a rejected Rite Aid lease in Troy, New York (New Rite Aid, LLC, Case No. 25-14861 (MBK)). The motions sought administrative rent, adequate protection payments, late fees, attorney fees, and conversion of the case to Chapter 7. Judge Michael B. Kaplan found that the debtor had satisfied its obligations and properly surrendered the premises, denying all of the landlord’s motions. Key Takeaways for Landlords Stub Rent Paid, But Timing Not Grounds for Late Fees: The court confirmed that “stub rent” (rent due between the petition date and first post-petition payment) qualifies as an administrative expense but emphasized that the Bankruptcy Code does not require payment by a specific date; however, it must be addressed prior to plan confirmation. Relatedly, late fees for May 2025 “stub rent” were denied since the Code imposes no deadline and plan confirmation had not occurred. Common Area Maintenance (CAM) Charges Dismissed as Untimely: HVP2 raised CAM charges only in a supplemental filing, which the court refused to consider. Even if timely, the pleadings lacked sufficient support to justify payment. Lease Surrender Deemed Proper: Despite HVP2’s claim that...

Reversing the First Circuit, the Supreme Court Holds That Rejection of an Executory Trademark License Does Not Bar the Licensee From Continuing to Use the Mark

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Posted in Licensing / Trademarks

On May 29, 2019

In Mission Product Holdings v. Tempnology, the Supreme Court, in an 8-1 opinion delivered by Justice Kagan, held that a debtor’s rejection of a trademark license under Section 365 of the Bankruptcy Code does not terminate the licensee’s rights to use the trademark under the agreement. Tempnology made clothing and accessories designed to stay cool during exercise, and marketed those products under the brand name “Coolcore.” In 2012, Tempnology gave Mission Product Holdings an exclusive license to distribute certain Coolcore products in the United States and granted Mission a non-exclusive global license to use the Coolcore trademarks. The agreement was set to expire in July 2016. In September 2015, however, Tempnology filed for relief under Chapter 11 of the Bankruptcy Code, and rejected the license agreement under Section 365(a). The Bankruptcy Court held that Tempnology’s rejection of the agreement revoked Mission’s right to use the marks. The Bankruptcy Appellate Panel reversed. The First Circuit rejected the Bankruptcy Appellate Panel’s view and reinstated the Bankruptcy Court’s decision. The First Circuit reasoned that Congress, in enacting Section 365(n) in 1988, “expressly listed six kinds of intellectual property,” but not trademarks. The First Circuit thus held that trademark licenses are categorically unprotected from court-approved rejection. The Supreme Court granted certiorari, and reversed the First Circuit. Section 365(a) of...

Retail Liquor License Renewals Now Due

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Posted in Liquor Licensing

On June 27, 2016

All New Jersey retail liquor licenses for the 2015-2016 license term expire on June 30, 2016. All New Jersey retail liquor licensees should have received notification in April through the Division of Alcoholic Beverage Control’s (ABC’s) web-based system, POSSE ABC, to renew their liquor licenses utilizing the ABC’s online portal. Subject to the specific renewal deadline fixed by each municipality, all state and municipal retail liquor license renewal fees for the 2016-2017 license term are currently due. Prior to renewal, all retail liquor licensees must also receive an Alcoholic Beverage Retail License Clearance Certificate for renewal from the Division of Taxation.

“Operation Swill”: New Jersey ABC and Division of Criminal Justice Raid 29 Bars and Restaurants That Allegedly Served Cheap Alcohol as “Premium” Brands

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Posted in Liquor Licensing

On May 24, 2013

On May 23, 2013, New Jersey’s Attorney General Jeffrey Chiesa and Division of Alcoholic Beverage Control (“ABC”) Director Michael Halfacre announced the details of “Operation Swill,” a year-long investigation involving more than 100 investigators throughout New Jersey. Operation Swill reached its climax one day earlier when ABC and Division of Criminal Justice personnel executed raids on 29 establishments throughout New Jersey suspected of substituting premium alcoholic beverage brands with “well brand spirits,” i.e., non-premium brands. N.J.A.C. § 13:2-23.19 prohibits a licensee from substituting another brand other than ordered by a customer unless agreed to by the customer. Approximately 1,000 bottles were seized during the raids, which will be held for further testing by the ABC and manufacturers.

IP and Chapter 11 Intersection: Kodak Files for Bankruptcy

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Posted in Licensing / Patent

On January 19, 2012

As anticipated, Eastman Kodak Co. filed a petition for Chapter 11 bankruptcy relief this morning in the United States Bankruptcy Court for the Southern District of New York. This development followed a recent flurry of patent infringement suits involving Kodak, and on the heels of Kodak’s unrequited efforts to license or sell off its substantial intellectual property (“IP”) portfolio.

Pennsylvania’s Alcohol Sale Privatization Debate: What Does It Mean for Retail Beer and Wine Sellers?

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Posted in Liquor Licensing

On January 18, 2012

Pennsylvania’s state-run stores could be on the verge of losing their decades-old monopoly on wine and liquor sales. On December 13, 2011, the Pennsylvania House of Representatives’ Liquor Control Committee voted 15-10 to approve an amended version of Pennsylvania House Bill 11, (“Pa. H.B. 11”), which would allow the state’s 1,200 beer retailers to sell wine to the public, in competition with the Pennsylvania Liquor Control Board’s (“PLCB”) 620 state-run stores. Notably, large supermarket chains within the state stand to gain an enormous benefit from the proposed law, which would allow for the first time in-store wine sales, as well as limited in-store tasting events. The proposed legislation now sits before the full House, awaiting floor debate, additional amendments, and a possible vote. The process could begin as early as this month.

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